1. The market position of the company's products
(1) The market competition pattern of the optical chip industry
According to lightcounting and combined with industry data, the global optical chip market size for optical communication in 2021 will be 1467 billion yuan, of which 2The market size of 5G, 10G and 25G and above optical chips is 116.7 billion yuan, 274.8 billion yuan, 107$5.5 billion. Combined with ICC data, the sales scale of China's optical chip manufacturers in 2021 will be 37$3.7 billion. China's optical chip manufacturers include specialized optical chip enterprises and optical chip optical module integration enterprises.
Among them, specialized optical chip enterprises focus on the field of optical chips and have a complete range of products, while optical chip and optical module integration enterprises in order to ensure the safety of optical chips, in addition to direct external procurement of optical chips, will develop some models of optical chip products through self-research or acquisition of optical chip business, and there is a relationship between cooperation and competition with specialized optical chip enterprises.
(2) The market competition pattern of optical chips at different rates and the company's market position
After years of development, China's optical chip enterprises have basically mastered 2The core technology of 5G and 10G optical chips, but there are still some models with high performance requirements and great difficulty, and the number of domestic manufacturers to achieve batch supply is small. In terms of 25G and above high-speed optical chips, China's localization rate is low, affected by factors such as process stability, reliability, supply capacity and downstream customer certification, China's optical module or optical device manufacturers still give priority to purchasing overseas high-speed optical chips, especially in the data center market and high-speed EML laser chips, only a small number of manufacturers achieve batch delivery. The main competitive landscape and the company's market position of optical chips at different rates are as follows:
①2.5G optical chips
China's optical chip enterprises have basically mastered 2The core technology of 5G optical chips, 2The 5G optical chip market has basically been localized. According to ICC statistics, in 2021, the global 2In the 5G and below DFB FP laser chip market, the company's product shipments accounted for 7%, the details are as follows:2In the 5G and below optical chip market, domestic optical chip companies have occupied the main market share, and the company's shipment volume does not occupy a leading position, mainly due to the implementation of differentiated product competition strategies in this field, mainly focusing on products with high added value.
2.5G optical chips are mainly used in the optical fiber access market, and the product technology is mature, such as PON (GPON) data upload optical module 25G 1310nm DFB laser chips have a high degree of localization, and foreign optical chip manufacturers have basically withdrawn from the relevant market due to cost competition and other factors; However, some products have high reliability requirements and are difficult, such as 2There are few domestic manufacturers that can supply 5G 1490nm DFB laser chips in batches, and according to C&C statistics, the company occupies 80% of the market share in 2020.
10G optical chip
China's optical chip companies have basically mastered the core technology of 10G optical chips, but some models of products still have a high technical threshold and rely on imports. According to ICC statistics, in 2021, the company's shipment volume accounted for 20% of the global 10G DFB laser chip market, surpassing Sumitomo Electric, Mitsubishi Electric, etc., as follows:
10G optical chips are used in the optical fiber access market, mobile communication network market and data center market.
a.Fiber optic access market
The 10G 1270nm DFB laser chip is mainly used for 10G-PON data upload optical modules, and according to C&C statistics, in 2020, the company's 10G-PON (XGS-PON) market share has accounted for nearly 50% of the market share in the overseas 10G-PON (XGS-PON) market.
The 10G 1577nm EML laser chip is mainly used for 10GPON data downstream, and the related chip design and process development are complex, and the localization rate is low, and only a few international leading manufacturers such as Broadcom, Sumitomo Electric, and Mitsubishi Electric can supply them in batches. At present, among the domestic optical chip manufacturers, Huawei and Hisense Broadband can partially achieve self-production and self-use.
b.Mobile communication network market
10G 1310 optical chips are mainly used in 4G mobile communication networks, and 5G mobile communication networks mainly use 25G optical chips. Due to the relative maturity of the 4G mobile communication network, the business pattern of 10G optical chips is stable, mainly Mitsubishi Electric, Lumentum, Hisense Broadband, Accelink, etc. The company's 10G laser chips used in 4G mobile communication networks have been supplied in batches, and the revenue during the reporting period was 743460,000 yuan, 2,519350,000 yuan, 2,432190,000 yuan, 1380580,000 yuan, the 10G optical chip applied to the upgrade of 5G base station has passed the customer verification stage and gradually expanded the relevant market.
c.Data Center Market
Overseas Internet companies mainly use 100G and above rate optical modules, while domestic Internet companies currently mainly use 40G 100G optical modules and have begun to transition to higher rate modules, of which 40G optical modules use four 10G DFB laser chips. Some domestic optical chip manufacturers such as Yuanjie Technology and Wuhan Minxin have the ability to ship related products, but downstream optical module manufacturers still need a process to increase the proportion of localization by considering factors such as replacement cost, reliability, and batch shipping capacity.
25G and above optical chips
25G and above optical chips include 25G, 50G, 100G lasers and detector chips. With the advancement of 5G construction, China's optical chip manufacturers have made breakthroughs in the 25G DFB laser chips applied to the fronthaul optical modules of 5G base stations, and optical module companies in the data center market have begun to gradually use the 25G DFB laser chips of domestic manufacturers, according to ICC statistics, the localization rate of 25G optical chips is about 20%, but the localization rate of optical chips above 25G is still about 5%.
According to Lightcounting and combined with industry data, the global optical chip market size of 25G and above will be 1075.5 billion yuan, and the company's product revenue accounted for 034%。25G and above optical chips are mainly used in the mobile communication network market and data center market, the details are as follows:
a.Mobile communication network market
5G mobile communication networks include fronthaul, midhaul and backhaul, and 25G optical chips are mainly used in the 5G fronthaul optical module market. In 2020, operators mainly used 25G optical chip solutions, and according to C&C statistics, in 2020, the company became the manufacturer to meet the mass supply of China Mobile's related 5G construction solutions with 25G MWDM 12-band DFB laser chips.
The 25GEML laser chips used in the 5G backhaul optical module are mainly used by overseas companies such as Mitsubishi Electric, Sumitomo Electric, and Lumentum**.
b.Data Center Market
Overseas Internet companies mainly used 100G optical modules in the early stage, and began to make a large-scale transition to 200G 400G optical modules in 2020. Domestic Internet companies mainly use 40G 100G optical modules, and will promote the batch deployment of 200G and 400G optical modules from 2022.
Among them, the demand for 100G optical modules accounts for more than 60% of the optical module market for data centers, mainly using four 25G DFB laser chip solutions or one 50G EML (modulated to 100G through PAM4 technology) laser chip solutions. Optical modules with 200G and above rates mainly use EML laser chip solutions. The 25G laser chips needed by the data center optical module market are mainly overseas manufacturers, and the number of new domestic optical chip manufacturers is gradually increasing.
The company's 25G DFB laser chips for data centers have been supplied in batches, and finally applied to G, a world-renowned high-tech company. The design and process development of EML laser chips for data centers are complex, the localization rate is low, and only overseas optical chip manufacturers have the ability to supply in batches, and the company's related products are in the development stage.
2. Project overview
With the expansion of the optical chip market, the company's product capacity is insufficient, and production capacity has gradually become a bottleneck restricting the company's development. In order to comply with the development trend of the industry and meet the market demand, the company plans to increase the construction of production lines to expand production capacity. The total planned investment of the project is 59,075370,000 yuan, 10G and 25G optical chip production lines will be established on the company's own land to improve the company's product capabilities and meet market demand.
In addition, the company has set up a special line production for core products, which helps to improve the efficiency of equipment use, further enhance the company's product quality and market competitiveness, and is an extension of the company's existing business.
3. The necessity of project implementation
(1) Expand the scale of production and break through the bottleneck of production capacity
With the rapid development of 5G, big data, and artificial intelligence, the market demand for medium and high-speed chips continues to grow. With advanced technology and high-quality services, the company has achieved rapid growth in the field of optical chips, and its 10G and 25G optical chip products have been widely recognized by downstream customers. However, subject to the limitations of the production line and site, the company's products are close to the ultimate load, and the pressure is gradually increasing. The company urgently needs to build a new production line to expand the production capacity of 10G and 25G optical chips to meet the growing customer demand.
(2) Dedicated line production to improve production efficiency and product yield
In the early stage of development, the company's construction was constrained by funds, and the construction of optical chip production lines was small, and the production lines needed to be debugged when producing products at different speeds, which reduced the efficiency of equipment use to a certain extent. At present, the application scenarios of optical chips are constantly expanding, and optical fiber access, 4G and 5G mobile communication networks, data centers and other fields are all in a favorable period of rate upgrade and generational change.
The company conforms to the overall development trend of the industry and actively develops higher-rate optical chips to meet market demand. The continuous enrichment of product categories and the continuous growth of the company's order quantity have put forward a more urgent demand for special line production. The company's active layout of special line production of optical chips is conducive to further improving production efficiency and product yield, consolidating product stability and reliability, and thus consolidating its market position.
(3) Establish its own production base to achieve rapid development
The company has established an IDM full-process business system including chip design, wafer manufacturing, chip processing and testing. The IDM model enables the company to achieve independent control of the optical chip production process, but it also puts forward higher requirements for the stability of the production site. In addition, the construction of optical chip production line has the characteristics of large investment, high installation difficulty and long commissioning cycle, and the company's current production site is leased, which is not conducive to the stability of production. The establishment of production lines on its own land can ensure the excellent environment required for the production of optical chips, further ensure product quality, and help the company achieve sustainable development.
4. Feasibility of project implementation
(1) Strong support from national policies to provide institutional guarantee for the implementation of the project
Optical chips are the core components of the communication industry, and the optical chip industry is the pillar industry of national communication facilities. At present, domestic enterprises mainly focus on the production of low-end products, and high-end products mainly rely on imports from US and Japanese monopolies. The high dependence on the import of high-end products has seriously affected the development of China's optical communication industry. In recent years, the state has introduced a series of encouraging and supporting policies to promote the innovation and development of the optical chip industry, and is committed to getting rid of the difficulties faced by development.
(2) Broad market prospects, providing a market basis for the implementation of the project
Throughout the development of the industry, the growing demand for transmission capacity of optical communication networks has led to the breakthrough development of optoelectronics, and optical chips continue to increase their functions and densities, and their economy, power consumption, and reliability have significant advantages. Benefiting from the construction and application of 5G networks, as well as the comprehensive upgrade of network infrastructure such as data centers, access networks, and metro backbone networks, a new round of high-speed optical network construction has begun.
According to C&C**, the global optical chip market will grow at a CAGR of 1259%, and the market size is expected to reach $3.6 billion by 2025. China's optical chip industry is in the process of localization, and the demand for domestic chips, especially mid-to-high-end optical chips, continues to grow in the optical communication market, and the market potential is huge.
(3) Profound technical accumulation to provide technical and quality assurance for project implementation
Since its establishment, the company has always attached importance to technology research and development and product quality. After years of deep cultivation, the company has formed two major platforms, the buried laser chip manufacturing platform and the ridged waveguide laser chip manufacturing platform, and has accumulated eight major technologies, including high-speed modulated laser chip technology, heterogeneous compound semiconductor material docking growth technology, and small divergence angle technology, and its technical advantages have been continuously highlighted.
With advanced technical support and development concepts, the company has led the development of domestic optical chips, 10G, 25G optical chips have achieved mass production, formed a first-mover advantage in domestic enterprises, and has established a stable strategic cooperative relationship with downstream important customers, creating a good reputation of the Yuanjie brand. Profound technical accumulation and excellent product quality will promote the company to further develop the market and consolidate its position in the industry after the project is put into production.
5. Overview of project investment
The total investment budget of this project is 59,075370,000 yuan, including construction costs of 13,402800,000 yuan, equipment purchase cost 26,346200,000 yuan, installation project cost 2,107700,000 yuan, other construction costs 1,072220,000 yuan, basic preparation fee of 2,146450,000 yuan, laying the bottom of the working capital of 14,000000,000 yuan.
6. Project implementation schedule
The construction period of this project is 3 years. According to the plan, the project mainly includes five stages: schematic design, construction engineering, equipment procurement and installation, project acceptance, trial production and operation.